Survey finds clients' crypto allocations are continuing to grow

A new survey from the Digital Assets Council of Financial Professionals and Franklin Templeton Digital Assets suggests clients and financial professionals are getting more comfortable with crypto, with a significant uptick in cryptocurrency ownership and recommendations among financial advisors.

The survey, which polled 619 financial professionals, underscores a marked shift in sentiment around digital assets. Building on DACFP's previous research, the survey reflects perspectives from advisors with significant experience, including 61 percent serving clients with assets between $500,000 and $3.5 million.

The Q3 2024 Advisor Pulse Survey indicates that 19 percent of advisors report more than half of their clients now hold digital assets in their portfolios, up from 15 percent in the previous quarterly snapshot. Notably, the percentage of advisors with no crypto-holding clients has dropped to just 3 percent, compared to 8 percent in Q2.

“The data show a clear shift in how financial advisors view digital assets as part of their clients’ portfolios,” Ric Edelman, founder of DACFP, said in a statement Tuesday. “More advisors are recommending crypto, and they’re increasing their recommended allocations. Both are signs of growing confidence in this asset class.”

Among key findings, 70 percent of advisors have recommended crypto investments to at least 10 percent of their clients. The most common suggested allocation is 2 percent, favored by 26 percent of advisors, followed by a 5 percent allocation, recommended by 22 percent.

The study also highlights forward-looking trends: 56 percent of advisors who have not yet recommended digital assets plan to do so, with half of them intending to start within six months. Of these, 30 percent anticipate recommending 5 percent allocations, while 22 percent lean toward a 2 percent recommendation.

“Digital assets are an increasingly important component of what we call portfolios of the future,” said Sandy Kaul, head of Franklin Innovation Research Strategies and Technology at Franklin Templeton. “With clients increasingly adding exposure to the asset class, advisors will need to continue to utilize educational resources that allow them to keep a strong pulse on the market as it evolves.”

The next snapshot reading by DACFP might show yet another uptick in adoption and chin-stroking among crypto-curious clients, as Donald Trump's win at the polls earlier this month has led to an apparent supercharging in the cryptocurrency space. Prices of bitcoin, the original top-dog digital asset, has rocketed in recent weeks to touch a new $93,000 record, prompting some observers to speculate that the next milestone of $100,000 is well within reach.

There's also the president-elect's well-known antagonism against SEC Chair Gary Gensler, who hasn't done much to endear himself to the crypto industry. While Trump has said he'd fire Gensler on "day one" following his confirmation to the White House, speculation that Gensler himself would resign from his post ahead of Trump's confirmation has been swirling in the cryptosphere, with some pointing to a recent speech by the federal securites agency head as a signal he'll step down before the end of the year.